Equipping Your Fleet Through Financing or Leasing

Having a capable, reliable fleet is at the foundation of any successful business utilizing heavy equipment.

Contractors – both new and well-established ones – need machinery they can depend on to effectively handle the jobs they’re hired to perform. Knowing how to pay for this crucial investment in the business is of the utmost importance.

If you don’t have the cash on hand to purchase the equipment, you may look at either financing the purchase through a loan or leasing it. There are pros and cons of each – having a good grasp of your financial situation and outlook will help guide you toward the right option for you.


There are many options when it comes to financing equipment purchases – essentially, obtaining a loan that requires scheduled payments, plus interest and fees. Carter Machinery has financing options featuring interest rates as low as 0% or 1.9%, depending on credit approvals.  

When you finance equipment, you have more flexibility in how you utilize it for your business – it’s yours to use as you wish, for as long as you wish. Financing is a tax-deductible option – you can get a deduction of up to $1 million on new and used equipment within the first year of ownership.

Competition in the online lending business has made it easier for businesses of varying credit scores to secure funding. Companies such as Carter Machinery – which does not require a down payment to qualify for financing – have experts to help businesses determine which financing options make the most sense for each business.

Looking to finance your equipment purchase, but not sure which payment options would work best for your budget? Use the Cat Financial payment calculator to help you determine what your monthly payments would be for various term conditions.


When you lease equipment, you’re agreeing to rent the equipment with monthly payments for a set amount of time. Lease agreements may include the option of purchasing the machinery at the conclusion of the term. Its condition at the end of the lease and your outlook on its future use will help determine if purchasing makes sense at that point.

Leasing, which is less costly up front because it doesn’t require a down payment, may be a good choice for companies that expect to need updated equipment on a regular basis.

One risk of leasing is that you won’t use the piece of machinery enough at some point during the lease to continue getting your money’s worth. For this reason, it’s important that you have a good grasp of your market and how you’re committed to monthly payments regardless of how often you use it.

Renting – Another Route To Consider

If you only need the equipment for a short time, renting may make the most sense. Carter Machinery has a vast selection of rental equipment for projects of different sizes – we recently added a Cat Rental Store app as a way to conveniently check equipment and manage your account.  

Call Carter Machinery at 888.344.RENT for information on equipment rentals or 844.296.4176 concerning electric power rentals.